Spending cuts ahead for Coquitlam school district after discovery of $7.5-million shortfall

Janet Steffenhagen, Vancouver Sun01.17.2013

Coquitlam school superintendent Tom Grant told a board of education meeting this week that 2012-13 spending is $7.5 million over target due to an unanticipated drop in enrolment, increased operational costs and less-than-expected revenue from its international students program.

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Another B.C. school district has uncovered a surprise multi-million-dollar budget shortfall and is scrambling to trim spending before year-end.

Coquitlam school superintendent Tom Grant told a board of education meeting this week that 2012-13 spending is $7.5 million over target due to an unanticipated drop in enrolment, increased operational costs and less-than-expected revenue from its international students program.

The announcement was similar to one last fall from the much-smaller New Westminster district after secretary-treasurer Brian Sommerfeldt discovered that the 2011-12 budget, which had appeared balanced in June, was almost $2.8 million in deficit. While still trying to figure out how to pay back that money, the district is bracing for a further $2.2 million deficit this year.

Although all school districts say they have serious financial struggles, only one other, Mission, has a deficit.

Some school trustees in Coquitlam blamed the provincial government for inadequate funding and inflexible grants, but others suggested the district had been overly optimistic in drafting its $270-million budget last spring. Enrolment projections for middle and secondary schools were too high and the anticipated revenue increase from the international students program was too rosy.

The teachers’ union suggested both parties are to blame and worried that its members and students will pay the price.

Financial problems have hit Coquitlam at a bad time. Secretary-treasurer Rick Humphreys resigned Jan. 1 for personal and health reasons, leaving Grant to fill both top jobs until a full-time replacement for Humphreys can be found.

Board chairwoman Melissa Hyndes admitted his resignation was “unexpected” but would provide no details, saying it was a personnel matter.

Coquitlam, the province’s third largest district, hasn’t experienced a financial crunch like this since 2003 and it will require serious belt-tightening. “We need … all of our school communities to help us reach the savings that we’re anticipating,” Hyndes said in an interview, adding that no staff cuts are planned despite an enrolment drop of 223 students rather than an increase of 80.

In his presentation to the board Tuesday, Grant said the district must boost revenues, trim expenses and streamline services while still providing the best learning environment possible for its 33,000 students. He plans to meet Education Ministry officials next week to discuss the situation.

Hyndes said she’s less worried about the next six months than she is about the following year. “I have to tell you, going into the next (2013-14) budget cycle, we are in an even worse position, like most districts in the province,” she said. “We have a problem now, but we will have possibly even larger problems next year.” She said she hopes the ministry will announce a funding injection during a meeting slated for early February.

The president of the Coquitlam Teachers’ Association greeted the budget news with dismay. “We’re profoundly disappointed in the board,” Teresa Grandinetti said in a letter to members. “We may not always agree with the board’s decisions, but we have always had confidence that the board’s decisions were sound and based on accurate information. We don’t have that confidence now.”

She said the superintendent promised to address the shortfall by cutting “stuff, not staff” but she isn’t sure that’s possible.

“As for the ‘stuff’ they talk about cutting, teacher release time will be drastically reduced. That’s not ‘stuff’, that’s cutting people — TTOCs (teachers-on-call) — who will have fewer work opportunities and less income to make a living.”

Hyndes said Coquitlam has always prided itself on being fiscally responsible and a leadership district. “And we still are — there are still lots of great things going on. It’s just that I think this year has been an anomaly.”

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Spending cuts ahead for Coquitlam school district after discovery of $7.5-million shortfall

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